LANSING -- Michigan’s fuel tax -- now set at 19 cents per gallon for unleaded fuel and 15 cents per gallon for diesel fuel -- would rise to 33 cents per gallon for both types of fuel under Gov. Rick Snyder’s 2014 budget plan unveiled today.

The fuel tax increases of 74% and more than 100%, combined with higher vehicle registration fees, are intended to raise an extra $1.2 billion a year to fix and maintain the state’s crumbling roads and bridges.

Vehicle registration fees would rise 25% for big trucks and trailers and 60% for cars and light trucks, to raise an extra $508 million, officials said.

“It is the choice of spending $12 billion over the next 10 years to repair our infrastructure, or $25 billion later on to reconstruct a failed system,” Snyder said in his budget presentation.

“This is the classic, you can change your oil or you can rebuild your engine.”

The higher fuel taxes and vehicle registration fees, which Snyder said would cost families about $120 extra per vehicle on average, promise to be the most controversial elements of the $50.9-billion spending plan.

"That increase is simply not doable for some families," said state Rep. Rashida Tlaib, D-Detroit. “I'm doing a lot of taxes for people and they're seeing $200 less in refunds this year. It's really hard to ask families to do more.”

Snyder’s budget also calls for:

• $8.6 million to create a new agency within the Department of Military and Veterans Affairs to focus on improving services to 700,000 veterans.

• Funding increases of about 2% for K-12 schools, community colleges, and universities.

• $15.2 million to train an additional 107 troopers for the Michigan State Police.

• $130 million over two years for early childhood education.

• A deposit of $75 million in the state’s Rainy Day Fund, bringing the total to $580 million.

Snyder said “it’s clear that Michigan is on the comeback,” and the budget invests in priorities such as roads, education, health, human services, job growth and public safety.

Snyder has usually been greeted by protesters at various appearances around the state.

And this group usually is against Snyder, said Brenda Ward, 60, of Detroit.

But not today.

The demonstrators were there to thank Snyder for his decision to ask the Legislature to expand Medicaid to include about 470,000 more uninsured low-income people.

"We're giving the governor praise today," said Ward. "When he does the right thing, we're with him."

Snyder said in expanding Medicaid “the bottom line is better care at a lower cost. This is not just about taking money from Washington,” he said.

“We have to come to grips with the fact that President Obama was reelected and Obamacare is here to stay,” Haines said. There was plenty of wariness over Snyder's proposal to expand Medicaid.

"If you’re seeing reticence or push back from us, I don’t think it’s a done deal that affordable care act is going to be coming into play," he said. "I for one am leery about tying my horse to that wagon."

Sen. Mike Green, R-Mayville, added he doesn't trust the federal government to live up to its obligations.

"Whenever we take their money, we lose any control on where it goes or how it's spent," he said.

But Rep. Gail Haines, R-Lake Angelus, chairwoman of the House Health Policy Committee:, said she supports the move because money the state will save on health care expenditures will be saved so it can be used for the state share of Medicaid costs, once those kick in.

On the higher fuel taxes and registration fees, the Michigan Chamber of Commerce has expressed support in principle, citing the urgent need to improve roads.

But in a news release today, the Michigan chapter of the National Federation of Independent Business sounded a less supportive note.

State director Charlie Owens said his group recognizes the need for good roads and adequate funding, but “it is still a difficult time for tax and fee increases.”

Questioned by state lawmakers, Snyder defended state spending on K-12 schools when asked how the schools could have received a 2% funding increase when the per-student foundation allowance hasn’t budged much.

Snyder said the state should also get credit for hundreds of dollars per student it has paid to reduce the schools’ long-term retirement liabilities, allowing school districts to redirect payments from retirement systems into the classrooms.

When that money is considered, Snyder said, K-12 school funding has increased 11% since 2011 under his administration, he said.